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come Statement Income Statement Biblio Files Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31 Biblio Files Company Contribution Margin Income Statement or the Year Ended December 31 Sales 424,00000 Sales $424,000.00 2 Variable costs: 2V ariable costs Manufacturing 233,200.00 21 200.00 63,600.00 169,600.00 Selling Administrative Contribution margin Fixed Costs 4 Selling 16,960.00 18,000.00Administrative 106,00000Contribution margin 7,84000254400.00 69,600.00 Fixed Costs: $5,000.00 4,000.00 3,400.00 588,000.00 Selling 9 Selling 8,000.00 2,400.00Administrative 563,600.00Income from operations Administrative 1000000 106,000.00 Income from operations 63,600.00 Target Profit Refer again to the income statements for Cover-to-Cover Company and Bibwo Files Company on their respective Income Statement panels. Note that both companies have the same sales and net income. Answer questions (1) -(3) that follow, assuming that all data for the coming year is the same as the current year axcopt for the amcunt of sales. If required, round answers to the nearest dollar 1.If Cover-to-Cover Company wants to increase is profit by $30,000 in the coming year, what must their amount of sales be? 2. If B bio Files Company wants to increase its profit by $30,000 in the coming year, what must thair amount of sales be?S coming year 3. What would explain the difference between your answers for (1) and (2)? Biblio Files Company has a higher contribution margin ratio, and so more of each sales dollar is available to cover foxed costs and provide income from operations O The answers are nct different; esch company has the same required sales amount for the coming year to achieve the desired target prot. O Cover-to-Cover Company's contribution margin ratio is lower, meaning that its more efficient in ins operations O The companies have goals that are not in the relevant range

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